[Federal Register: December 27, 2001 (Volume 66, Number 248)]
[Notices]
[Page 66975-66978]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27de01-180]
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DEPARTMENT OF THE TREASURY
Office of the Assistant Secretary for Financial Institutions;
Notice of Funds Availability (NOFA) Inviting Applications for the First
Accounts Program
AGENCY: Office of the Assistant Secretary for Financial Institutions,
Department of the Treasury.
ACTION: Notice of Funds Availability (NOFA) inviting applications.
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SUMMARY: The Consolidated Appropriations Act, 2001 (Public Law 106-554,
114 Stat. 2763, 2763A-126) and the Department of Transportation and
Related Agencies Appropriations Act, 2001 (Public Law 106-346, 114
Stat. 1356, 1356A-44) appropriated funds to the Department of the
Treasury (``Treasury'') to develop and implement programs to expand
access to financial services for low- and moderate-income individuals
(the ``First Accounts Program''). This NOFA invites grant applications
from eligible entities that will either directly, or through one or
more insured depository institutions/insured credit unions, provide
low-cost electronic, checking, or other types of accounts to low- and
moderate-income individuals who currently do not have an account with
an insured depository institution or an insured credit union. The
paramount goal of the First Accounts Program grants to be awarded under
this NOFA is to move a maximum number of ``unbanked'' low- and
moderate-income individuals to a ``banked'' status with either an
insured depository institution or an insured credit union. Treasury
intends to award up to $8 million in appropriated funds under this
NOFA. Treasury reserves the right to award in excess of $8 million in
appropriated funds under this NOFA provided that the funds are
available, and Treasury deems it appropriate. Eligible entities
include, but are not limited to, insured depository institutions,
insured credit unions, financial services electronic networks,
employers of unbanked low- and moderate-income individuals, community
development financial institutions, nonprofit organizations, States,
Local Governments, Indian Tribal Governments, and labor organizations.
DATES: Applications may be submitted at any time, commencing December
27, 2001, and may be submitted by mail or by overnight/express delivery
service, or electronically, in the format prescribed by Treasury.
(Applications sent by facsimile or delivered by hand will not be
accepted). The deadline for receipt of an application is March 20,
2002. Paper applications received in the specific Treasury office
designated below after that date will not be considered, except as
follows. An application mailed via the United States Postal Service
will be considered as having met the application deadline if it is
clearly postmarked on or before midnight March 20, 2002. An application
sent by overnight/express delivery will be considered as having met the
application deadline if it is placed in transit by no later than March
20, 2002 with an overnight/express delivery service. In each such case,
it is advisable to obtain documentation from the carrier showing the
date the application was placed in transit. A single, clear date stamp
will help in determining whether the delivery of a paper application
has met the deadline requirements set forth above. Electronic
applications received at the specific email address set forth below
after March 20, 2002 will not be considered. While Treasury will accept
electronic applications, it is currently unable to collect electronic
signatures for the First Accounts Program. As a result, an applicant
sending an application electronically shall also submit by mail or
overnight/express delivery service signed and dated hardcopy signature
pages and certifications contained in the First Accounts Program
application packet. Such hardcopies must be
[[Page 66976]]
received in the specific Treasury office designated below by 6 p.m. EST
on April 3, 2002. Hardcopy signature pages and certifications received
in the specific Treasury office designated below after that date and
time will result in the related application being eliminated from
consideration for a grant award.
ADDRESSES: Paper applications shall be sent to: Department of the
Treasury, ATTN: First Accounts, Main Treasury Building, Room 5017,
Washington, DC 20220. Electronic applications shall be sent to:
first.accounts@do.treas.gov.
OBTAIN APPLICATIONS: Applications are available on the Treasury website
at www.treas.gov/firstaccounts.
FOR FURTHER INFORMATION CONTACT: Questions regarding the programmatic
requirements for the First Accounts Program may be submitted
electronically to Jean Whaley, Director, Office of the Assistant
Secretary for Financial Institutions, at jean.whaley@do.treas.gov. All
questions and accompanying answers will be posted and made available to
the public at www.treas.gov/firstaccounts.
SUPPLEMENTARY INFORMATION:
I. Background
Without basic financial services, low- and moderate-income
individuals may have a reduced ability to manage their finances, and
may be limited in planning and saving for the future. Such individuals
may have limited access to other financial products such as credit
cards, residential mortgages, or automobile loans. Some of the reasons
why low- and moderate-income individuals do not have bank accounts are
a lack of low-cost account products tailored to meet their needs,
previous problems with bank accounts, insufficient convenient access, a
lack of consumer education, and a financial services provider
perception that such accounts may not be profitable. The Federal
Reserve's 1998 Survey of Consumer Finances indicates that nearly one
out of ten families in the United States lacks either a checking or
savings account. Most of those families had annual incomes below
$25,000, and most lived in low- and moderate-income service areas.
To address this disparity, Congress appropriated funds for the
First Accounts Program. Specifically, the Consolidated Appropriations
Act, 2001 (Public Law 106-554, 114 Stat. 2763, 2763A-126) and the
Department of Transportation and Related Agencies Appropriations Act,
2001 (Public Law 106-346, 114 Stat. 1356, 1356A-44) authorized the
Department of the Treasury (``Treasury'') to develop and implement
programs to expand access to financial services for low- and moderate-
income individuals. Treasury will implement the First Accounts Program
through three related mechanisms: (1) Funding private sector provision
of low-cost accounts and access to Automated Teller Machines (``ATMs'')
to low- and moderate-income individuals who do not currently utilize
bank accounts or other financial service opportunities; (2) funding
financial education for low- and moderate-income individuals; and (3)
conducting research on the financial services needs of low- and
moderate-income individuals (this is not the subject of this NOFA).
This NOFA invites grant applications from eligible entities that will,
either directly or through one or more partners, provide low-cost
electronic, checking, or other types of accounts and access to ATMs to
low- and moderate-income individuals who currently do not have an
account with an insured depository institution or an insured credit
union. The paramount goal of the First Accounts Program grants to be
awarded under this NOFA is to move a maximum number of ``unbanked''
low- and moderate-income income individuals to a ``banked'' status with
either an insured depository institution or an insured credit union
through the development of financial products and services that can
serve as replicable models in meeting the financial services needs of
such individuals in other communities without the need for ongoing
public subsidies. Additional goals include the provision of financial
education to unbanked low- and moderate-income individuals to enhance
the sustainability of the new financial relationship. The following
contains an illustrative listing of the types of projects that are
eligible to be funded under this NOFA:
(1) An insured depository institution/insured credit union
partnering with one or more small business enterprises that are
employers of unbanked low- and moderate-income individuals to provide
such employees with both low-cost electronic accounts, and increased
access to ATMs through the placement of one or more ATMs on-site.
(2) An insured depository institution or an insured credit union
providing low-cost checking accounts to unbanked low- and moderate-
income individuals.
(3) An insured depository institution or an insured credit union
providing low-cost electronic accounts to unbanked low- and moderate-
income individuals.
(4) A labor organization, whose membership consists of unbanked
low- and moderate-income individuals, establishing a low-income
designated insured credit union or an insured credit union that will
become certified as a community development financial institution.
(5) A faith based nonprofit organization partnering with one or
more insured depository institutions/insured credit unions to provide
low-cost accounts and financial education for unbanked low- and
moderate-income individuals.
(6) An Indian Tribal Government partnering with one or more insured
depository institutions and/or insured credit unions to provide
unbanked low- and moderate-income tribal members with low-cost
electronic accounts, financial education, and increased access to funds
through the placement of ATMs on the Indian reservation.
(7) An insured community development financial institution
partnering with service industry employers (e.g. fast food restaurant
franchisees) to provide unbanked low- and moderate-income employees
with free checking accounts, provided a minimum account balance of $100
is maintained.
Treasury intends to award up to $8 million in appropriated funds
under this NOFA. Treasury reserves the right to award in excess of $8
million in appropriated funds under this NOFA provided that the funds
are available, and Treasury deems it appropriate. Treasury reserves the
right to fund, in whole or in part, any, all, or none of the
applications submitted in response to this NOFA.
II. Eligibility
In order to be eligible to receive funding under this NOFA, an
eligible entity shall, at a minimum, propose to provide low-cost
electronic, checking or other types of accounts to ``unbanked'' low-
and moderate-income individuals either directly (in the case of an
applicant that is an insured credit union or an insured depository
institution) or indirectly through one or more insured depository
institutions and/or insured credit unions. In addition, only projects
that propose new activities or expand existing activities will be
considered eligible for funding under this NOFA. Eligible entities
include community development financial institutions, depository
institution holding companies, employers, financial services electronic
networks, Indian Tribal Governments, insured credit unions (as an
insured credit union's charter and field of membership allow),
[[Page 66977]]
insured depository institutions, labor organizations, Local
Governments, non-profit organizations, and States. Individuals are not
eligible to receive funding under this NOFA. Each application shall
identify a single applicant, which must, at the time of application, be
a duly organized and validly existing legal entity under the laws of
the jurisdiction in which it is incorporated or otherwise established.
III. Application Packet
An applicant under this NOFA must submit the materials described in
the application packet in the format prescribed therein. Applications
are available on the Treasury website at www.treas.gov/firstaccounts.
IV. Definitions
The following definitions shall apply to the terms contained in
this NOFA and the application packet:
(a) Community development financial institution means an
organization that has been certified as such pursuant to 12 CFR
Sec. 1805.201 by the Department of the Treasury's Community Development
Financial Institutions Fund.
(b) Depository institution holding company means a bank holding
company or a savings and loan holding company as defined in section 3
of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)).
(c) Electronic account means an account at an insured credit union
or an insured depository institution that has the following minimum
features: (1) Electronic access; and (2) provides the same consumer
protections that are available to other account holders at the same
institution.
(d) Eligible entity means any legal entity including a corporation,
partnership, governmental body, agency, or association, other than an
agency or instrumentality of the United States.
(e) Employee means an individual who provides services or labor for
an employer for wages or other remuneration but does not mean
independent contractors.
(f) Employer means a person or entity that engages the services or
labor of low- and moderate-income employees to be performed in the
United States for wages or other remuneration, but shall not include an
agency or instrumentality of the United States.
(g) Financial services electronic network means an organization or
entity that provides electronic access to an individual's account at an
insured credit union or an insured depository institution, including an
automated teller machine network, point-of-sale-network, and a provider
of such services through the Internet.
(h) Indian reservation has the same meaning as in section 4(10) of
the Indian Child Welfare Act of 1978 (25 U.S.C. 1903(10)) and, to the
extent not already included, shall include lands held by incorporated
Native groups, regional corporations, and village corporations, as
defined or established pursuant to the Alaska Native Claims Settlement
Act; public domain Indian allotments; and former Indian reservations in
the State of Oklahoma.
(i) Indian Tribal Government means any Indian Tribe, band, pueblo,
nation, or other organized group or community, including any Alaska
Native village or regional or village corporation, as defined in or
established pursuant to the Alaska Native Claims Settlement Act which
is recognized as eligible for special programs and services provided by
the United States to Indians because of their status as Indians.
(j) Insured credit union means any credit union, the member
accounts of which are insured by the National Credit Union Share
Insurance Fund.
(k) Insured depository institution means any bank or savings
association, the deposits of which are insured by the Federal Deposit
Insurance Corporation.
(l) Labor organization means an organization of any kind in which
employees participate and which exists for the purpose, in whole or in
part, of dealing with employers concerning grievances, labor disputes,
wages, rates of pay, hours of employment, or conditions of work.
(m) Local Government means a political subdivision of a State
including, without limitation, a county, municipality, city, town,
township, local public authority school district, special district,
intrastate district, or any agency or instrumentality of any of the
foregoing.
(n) Low- and moderate-income means a family income that does not
exceed--(1) for nonmetropolitan areas, 80 percent of the statewide
median family income; or (2) for metropolitan areas, 80 percent of the
greater of the statewide median family income or metropolitan area
median family income.
(o) Low- and moderate-income service area means: (1) An Indian
reservation; (2) any population census tract located within a
metropolitan area in which the median family income does not exceed 80
percent of the greater of the statewide median family income or the
metropolitan median family income; or (3) any population census tract
which is not located within a metropolitan area in which the median
family income does not exceed 80 percent of statewide median family
income.
(p) Low-income designated credit union means an insured credit
union that meets the criteria contained in 12 CFR 701.34.
(q) State means any of the several States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States, or any agency or instrumentality of
any of the foregoing.
(r) Unbanked means an individual who currently does not have an
account at an insured credit union or an insured depository
institution.
V. Evaluation
All applications will be reviewed for eligibility and completeness.
If determined to be eligible and complete, applications will be
evaluated by Treasury on a competitive basis in accordance with the
criteria contained in this NOFA.
Phase One--Scoring Review
In conducting its initial substantive review, Treasury will
evaluate each application and assign numeric scores using a 100 point
scale as follows:
(a) The Likelihood of Success Criterion (the extent to which the
project: (1) Will serve a meaningful number of unbanked low- and
moderate-income individuals; (2) is shown to be likely to result in the
provision of both low-cost electronic, checking or other types of
accounts, and expanded access to ATMs, to such individuals; (3)
demonstrates that costs to be incurred by low- and moderate-income
individuals are the least necessary to achieve goals; and (4) actively
involves employers of unbanked low- and moderate-income individuals):
20 points maximum
(b) The Reasonableness of Approach Criterion (the extent to which
project activities demonstrate a well-researched and well-reasoned
approach toward expanding the provision of financial products and
services to unbanked low- and moderate-income individuals): 20 points
maximum.
(c) The Self-Sustaining Criterion (the extent to which the project
activities can become self-supporting): 15 points maximum.
(d) The Model Qualities Criterion (the extent to which the project
demonstrates a replicable framework on a national, regional, State, or
local basis): 10 points maximum.
(e) The Timeliness Criterion (the extent of the speed in which the
project will be rolled out and begin to achieve measurable, positive
results): 10 points.
[[Page 66978]]
(f) The Performance Goal Setting Criterion (the extent to which the
project has specific, measurable, and relevant performance goals): 10
points.
(g) The Experience/Track Record Criterion (the extent to which the
applicant and other participating entities have previous experience on
projects of a similar scale and scope, and have a track record of
success in carrying out such projects): 10 points.
(h) The Management Capability Criterion (the extent to which the
management team has the demonstrated ability to manage projects): 5
points.
In order to be considered eligible to advance to the next phase of
substantive review, an applicant must receive a minimum score of 50
points.
Conditional Selection/Second Phase Review
Once the initial evaluation is completed, Treasury will determine
which of those applications that received at least 50 points will be
conditionally selected based on the Phase One scores and the amount of
funds available. In addition, Treasury will seek to conditionally
select a group of applicants whose projects are geographically diverse,
e.g., covering metropolitan, nonmetropolitan, and rural areas as well
as different regions of the United States.
Once Treasury determines which applicants have been conditionally
selected, Treasury will contact such applicants and may interview third
parties to obtain clarifying or confirming information on each
conditionally selected applicant. Once such information has been
collected and analyzed, Treasury staff will make a recommendation to
the Treasury selecting official who will make a final funding decision
based on the applicant's file including, without limitation, Phase One
evaluations and Phase Two recommendations, the amount of funds
available, and geographic and institutional diversity considerations.
Award Requirements
Each awardee will be required to enter into a grant agreement with
Treasury before it may begin project activities and receive a Treasury
disbursement of grant funds. The terms and requirements for funding
will be set forth in both a Notice of Award and the grant agreement.
Some of these requirements are as follows:
(a) Grant funds can only be used for the purposes set forth in the
grant agreement.
(b) Each awardee will be responsible for completing the project and
expending the grant funds within the time period set forth in the grant
agreement.
(c) Each awardee will be required to submit periodic reports and a
final report to Treasury.
Authority: Pub. L. 106-554, 114 Stat. 2763, 2763A-126; Pub. L.
106-346, 114 Stat. 1356, 1356A-44; 31 U.S.C. 321.
Dated: December 17, 2001.
Sheila C. Bair,
Assistant Secretary for Financial Institutions.
[FR Doc. 01-31818 Filed 12-26-01; 8:45 am]
BILLING CODE 4810-25-P
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